Reasons for these measures
The forensic audit to assess the integrity, compliance and efficacy of mobile money platforms and transactions in Zimbabwe has revealed significant weaknesses in the systems of the mobile payment operators, namely Ecocash, OneMoney, Telecash and Mycash.
The critical weaknesses that cut across the four mobile payment platforms are:
- Non-adherence to KYC principles, characterised by, among other issues, creation of mobile money accounts using fictitious and unverified identification particulars;
- Creation of money on the platforms (overdrafts and fraudulent /fictitious credits) which is not backed by balances in the Mobile Money Trust Accounts;
- System infrastructure inadequacies and weak Anti Money Laundering controls;
- Failure to comply with, including willful disregard for, regulatory directives;
- Connivance between mobile money operator employees and customers to delay or illegally bypass account freeze orders;
- Failure to deduct or remit statutory taxes; and
- Rampant abuse of agent, super-agent and bulk payment wallets for purposes of trading on the foreign exchange parallel market.
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